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Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-4.48 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -4.48 suggests that the company is not a manipulator.

PAM' s 10-Year Beneish M-Score Range
Min: -6.61   Max: 2.82
Current: -4.48

-6.61
2.82

During the past 10 years, the highest Beneish M-Score of Pampa Energia SA was 2.82. The lowest was -6.61. And the median was -2.89.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.3895+0.528 * -1.7028+0.404 * 0.7962+0.892 * 1.07+0.115 * 1.143
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2965+4.679 * -0.1775-0.327 * 1.1441
=-4.48

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $238.4 Mil.
Revenue was 188.523023256 + 173.25 + 166.442674419 + 160.030697674 = $688.2 Mil.
Gross Profit was 5.59779069767 + -0.466511627907 + 13.2284883721 + -6.78337209302 = $11.6 Mil.
Total Current Assets was $519.5 Mil.
Total Assets was $1,791.8 Mil.
Property, Plant and Equipment(Net PPE) was $978.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $49.7 Mil.
Selling, General & Admin. Expense(SGA) was $162.7 Mil.
Total Current Liabilities was $747.0 Mil.
Long-Term Debt was $446.1 Mil.
Net Income was 11.1159302326 + 36.0105813953 + -45.3610465116 + -11.4603488372 = $-9.7 Mil.
Non Operating Income was 50.1781395349 + 11.1220930233 + -35.2952325581 + -31.6791860465 = $-5.7 Mil.
Cash Flow from Operations was 116.468604651 + 54.545 + 58.0825581395 + 84.9831395349 = $314.1 Mil.
Accounts Receivable was $160.3 Mil.
Revenue was 166.00755814 + 132.42627907 + 161.883488372 + 182.91755814 = $643.2 Mil.
Gross Profit was -2.84848837209 + -9.00930232558 + -12.0077906977 + 5.44209302326 = $-18.4 Mil.
Total Current Assets was $425.9 Mil.
Total Assets was $1,497.9 Mil.
Property, Plant and Equipment(Net PPE) was $763.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $44.6 Mil.
Selling, General & Admin. Expense(SGA) was $117.3 Mil.
Total Current Liabilities was $564.1 Mil.
Long-Term Debt was $307.7 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(238.383837209 / 688.246395349) / (160.340116279 / 643.234883721)
=0.34636409 / 0.24927149
=1.3895

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(-0.466511627907 / 643.234883721) / (5.59779069767 / 688.246395349)
=-0.02864193 / 0.01682013
=-1.7028

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (519.46 + 978.567325581) / 1791.84383721) / (1 - (425.900116279 + 763.533023256) / 1497.93372093)
=0.1639744 / 0.20595076
=0.7962

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=688.246395349 / 643.234883721
=1.07

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(44.6234883721 / (44.6234883721 + 763.533023256)) / (49.671627907 / (49.671627907 + 978.567325581))
=0.05521639 / 0.04830748
=1.143

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(162.668255814 / 688.246395349) / (117.260813953 / 643.234883721)
=0.23635177 / 0.18229859
=1.2965

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((446.123372093 + 747.004186047) / 1791.84383721) / ((307.697906977 + 564.078953488) / 1497.93372093)
=0.66586582 / 0.58198627
=1.1441

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-9.69488372093 - -5.67418604651 - 314.079302326) / 1791.84383721
=-0.1775

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -4.48 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun04Jun05Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.49210.75131.06371.24321.05231.5563
GMI 1.0931.0541.21921.50822.3609-1.0266
AQI 1.08390.77041.04442.05530.78030.5969
SGI 2.71351.01981.1891.19571.15050.7968
DEPI 0.50331.08850.91450.89781.06331.1461
SGAI 0.88341.14781.06071.031.00281.7581
LVGI 1.11490.93571.09661.15431.15641.2517
TATA -0.0633-0.0942-0.0594-0.1359-0.1441-0.0778
M-score -1.71-3.19-2.45-2.09-2.39-3.94

Pampa Energia SA Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.63170.89311.05510.77491.27441.14681.55211.69771.6971.3895
GMI 1.61351.98322.465412.8615-6.2017-2.2308-0.9831-0.9433-3.0239-1.7028
AQI 0.83692.00110.78030.90210.68180.76010.59690.57160.86880.7962
SGI 1.52531.48261.14741.12410.9530.8480.7990.80920.9561.07
DEPI 1.28570.92451.52480.91770.81750.78460.79931.03031.11261.143
SGAI 1.08121.07421.02211.03141.29981.44331.72231.70271.39021.2965
LVGI 1.11821.04421.15641.14771.15581.2291.25171.28791.18741.1441
TATA -0.111-0.1075-0.1208-0.1636-0.0616-0.0827-0.0787-0.0739-0.1414-0.1775
M-score -2.63-1.76-2.172.82-6.61-4.85-3.96-3.76-4.83-4.48
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